I. Introduction to the Report

( 1) Preparation Notes

This report is the first publicly released "Quality Credit Report" by Suzhou Tongfu Supermicro Semiconductor Co., Ltd. (hereinafter referred to as the "Company" or "Tongfu Supermicro"), prepared in accordance with the national standards of the People's Republic of China—GB/T 29467-2012, "Guidelines for Implementing Enterprise Quality Integrity Management," and GB/T 31870-2015, "Guide for Preparing Enterprise Quality Credit Reports." It also reflects the company's progress in building its quality integrity system during 2023.

Our company guarantees that the information contained in this report—regarding our quality philosophy, quality management practices, integrity-based quality management, product quality responsibilities, and other related aspects—including the principles, systems, measures implemented, and performance achieved—contains no false records or misleading statements. We assume full responsibility for the truthfulness and accuracy of its content.

Report Organization Scope: Suzhou Tongfu Supermicro Semiconductor Co., Ltd.

Report Publication Period: From January 1, 2023, to December 31, 2023

Report publication cycle: Once per year

Report data note: The data cited in this report are sourced from the company and are authentic and valid.

How to obtain the report: Company website

( 2) Speech by Senior Leaders

Suzhou Tongfu Superwei Semiconductor Co., Ltd. is dedicated to providing comprehensive, high-end flip-chip packaging and testing solutions, contributing the Tongfu Superwei approach, vision, and expertise to the global advancement of the chip packaging and testing industry. Guided by the quality principle of "Customer First, Pursuit of Excellence," we firmly uphold our company's primary responsibility for quality, strictly adhering to relevant national quality laws and regulations. We deeply embrace the quality philosophy that "the customer is king, and quality is life," and actively embody the quality spirit of "respecting quality, staying customer-focused; fulfilling our duties with dedication, and evolving with the times." We remain committed to fulfilling our corporate commitment as the first responsible party for product quality, continuously striving to enhance both product and service quality. Through unwavering implementation of our quality responsibilities, we effectively ensure safety and quality, while responsibly assuming liability for any quality-related losses in accordance with the law.

To ensure the effective operation of the quality integrity system, the company has strengthened its framework through systematic institutional development, clearly defined responsibilities at each position, implemented rigorous performance assessments, fostered a robust quality culture, and continuously driven improvement initiatives. By actively cultivating an atmosphere of quality integrity and diligently building a comprehensive quality integrity system, the company is firmly committed to delivering exceptional value to its customers.

Suzhou Tongfu Superwei Semiconductor Co., Ltd. will continue to diligently uphold its social responsibility of prioritizing quality and conducting business with integrity, striving for excellence in quality to win over the market.

( 3) Company Profile

Suzhou Tongfu Supermicro Semiconductor Co., Ltd. was established in 2004, with Tongfu Microelectronics Co., Ltd. serving as the controlling shareholder and jointly investing alongside U.S.-based Advanced Micro Devices (AMD). Tongfu Supermicro primarily focuses on the packaging and testing of high-end processor chips, boasting the capability to handle the encapsulation and testing of central processing units (CPUs), graphics processing units (GPUs), and accelerated processing units (APUs). The company boasts a registered capital of US$133.38 million, and its products are widely used in cutting-edge fields such as smart terminals, IoT, artificial intelligence, automotive electronics, servers, and data centers—positionsing it as a global leader in the high-end integrated circuit packaging and testing industry. To meet the ever-growing market demand, the company completed construction in September 2022 of a state-of-the-art R&D and production base covering 155 mu, designed to set a leading domestic standard for high-performance computing processor packaging and testing. The facility is strategically located within the Suzhou Area of Jiangsu Pilot Free Trade Zone. Tongfu Supermicro’s primary customers include AMD and China’s “China Chip” initiative clients. The company has established robust R&D platforms at the national, provincial, and municipal levels, along with a national-level postdoctoral workstation and a provincial graduate workstation. It holds multiple world-class, proprietary core technologies and has accumulated an impressive portfolio of related patents and software copyrights. Moreover, the company actively collaborates with domestic manufacturers to advance the localization of high-end packaging and testing materials and equipment, fostering a thriving industrial ecosystem. Currently, Tongfu Supermicro has successfully achieved certifications across various management systems, including quality, environmental, occupational health and safety, energy efficiency, hazardous substance control, electrostatic discharge protection, corporate social responsibility, integration of IT and industrialization, safe production, AEO compliance, "Made in Suzhou," and business continuity management. As a result, the company was honored with the Suzhou City Quality Award in 2021 and the Suzhou Mayor’s Quality Award in 2022. The Semiconductor Packaging and Testing Smart Factory Standard Application Pilot Project has been selected for the 2023 National Market Supervision Administration and Ministry of Industry and Information Technology List of Intelligent Manufacturing Standard Application Pilots. 。

II. Report Body

( 1) Corporate Quality Philosophy

The company has always placed great emphasis on quality management. Since its establishment in 2004, it has actively introduced, assimilated, and adopted advanced quality management methods and philosophies. Notably, after the company formed a joint venture and implemented the Excellence Performance Management Model in 2016, it has consistently adhered to a customer-driven approach and technology-led innovation, fostering corporate cultural reforms—including the development of a robust quality culture—while striving to deliver high-quality products. The company regards product quality as the cornerstone for its survival and growth. To date, the company has successfully obtained several key quality management system certifications, including ISO9001, IATF16949, and the "Made in Suzhou" brand certification, positioning its product quality at an industry-leading level. The company’s core quality philosophy and spirit are encapsulated in two guiding principles: "Customers are God; Quality is Life," and "Respect Quality, Stay Customer-Centric; Fulfill Responsibilities with Dedication and Keep Pace with the Times."

The company strictly adheres to the requirements of this international quality management system, effectively ensuring the high quality of both its products and services, while fostering a culture of quality—embedding quality principles and the spirit of excellence into every role, team, and employee's mindset. To fundamentally strengthen quality management and enhance the company’s overall operational quality, we consistently implement advanced quality improvement tools and initiatives such as Lean, Six Sigma, and QCC projects. In particular, taking the introduction of the Excellence Performance Model as an opportunity, we are promoting comprehensive quality management, leveraging various statistical quality tools, and continuously identifying opportunities and approaches for improvement through internal audits, self-assessments, and third-party audits or reviews—driving our organization steadily toward achieving outstanding performance.

The company promotes its corporate culture and quality philosophy through meetings, training sessions, bulletin boards, the company website, an internal newsletter, a WeChat official account, and a dedicated cultural platform.

( 2) Enterprise Quality Management

2.1 Quality Management Organization

The company has established a product and service quality responsibility model, under which the General Manager assumes overall accountability, the Chief Quality Officer oversees comprehensive responsibilities, and each department takes on specific functional duties. Adhering to the "Three No's Principle"—"refuse to accept non-conforming products, refuse to manufacture non-conforming products, and refuse to allow non-conforming products to leave the facility"—the company has formulated inspection standards for raw materials, work-in-process items, and finished products. Each department fulfills its designated role while maintaining open communication and collaboration across all processes—from R&D and procurement to production and delivery—thereby strengthening quality control throughout the entire manufacturing cycle.

Figure 2.1-1 Organizational Chart

Among the fundamental job skills for each position is training tailored to customer requirements. For employees taking on new or adjusted responsibilities that impact compliance with quality standards, internal requirements, or legal and regulatory mandates, the company provides specialized on-the-job training. Additionally, personnel involved in quality-related tasks undergo training specific to their roles, focusing on potential failure modes and their associated consequences. This ensures that relevant staff fully understand their quality responsibilities and authorities, while the company has also established an incentive system linking performance evaluations directly to quality performance outcomes.

2.2 Quality Management System

2.2.1 Quality Policy and Quality Objectives

Since its establishment, the company has implemented the ISO9001 quality management system, focusing on delivering high-quality, cutting-edge packaging and testing chips along with exceptional customer service. Guided by the quality principle of "Customer First, Pursuit of Excellence," we have developed a comprehensive quality management system that covers every stage and lifecycle of our products—from customer needs assessment and packaging/testing process design and development, through production manufacturing and final product delivery, to after-sales support. In compliance with ISO9001 and IATF16949 standards, we have established essential system documents such as the Quality Manual, procedural documents, and other quality-related files, ensuring their effective implementation, ongoing maintenance, and continuous improvement in efficiency.

During its operations, the company adheres to a results-oriented approach, aligning with strategic planning by systematically outlining key corporate tasks at each hierarchical level, breaking them down into actionable steps. It has established a comprehensive KPI system—spanning company-wide, departmental, and employee levels—that includes specific performance targets. This system serves as the backbone for both the overall business unit plans and the annual work agendas of every functional department, enabling the company to closely monitor progress across all initiatives while ensuring the coherence and consistency of its measurement framework. Under the leadership of the company’s management team,全体员工 are committed to the goal-setting philosophy of innovation-driven growth and continuous improvement. The company also emphasizes enhancing awareness about product and service quality, setting clear quality objectives at relevant functions and organizational levels. Regular monitoring and evaluation are conducted to refine these goals over time, gradually fostering five key mechanisms: "strengthening supervision, reinforcing incentives and penalties, optimizing evaluation processes, driving ongoing improvements, and deepening cross-functional collaboration." These efforts collectively empower the organization to sustainably boost its quality vitality.

2.2.2 Quality Education

The company has established a comprehensive training and development system, backed by relevant rules and regulations. Innovatively, it has introduced the advanced "Three Transformations" concept: "forward-thinking training philosophy, resource-sharing and complementarity, and digitally enhanced training methods." This approach focuses on cultivating employees' general competencies, specialized skills, and leadership abilities, ultimately driving the organization toward the achievement of its overarching goals. Drawing on cutting-edge industry practices and proven methodologies in employee development, the company is continuously refining and enhancing its own training framework to align with both current needs and future aspirations.

To firmly establish a sense of quality integrity among all employees, the company has formulated an annual education and training plan that encompasses company-level, departmental, system, safety, and intellectual property training—covering topics such as the quality management system, quality tools, quality awareness, and quality ethics. This plan also outlines clear responsibilities for training management and detailed implementation procedures, ensuring the establishment of a standardized employee education and training management system. Department heads are tasked with diligently organizing educational and training activities for their respective teams, in accordance with company guidelines. Meanwhile, the Production Department Manager is responsible for conducting quality integrity awareness campaigns aimed at production line supervisors, team leaders, and frontline staff. The company promotes quality integrity by sharing best practices through specialized training sessions, written materials, and short video clips—often displayed or distributed to employees. Additionally, various engaging methods such as photo exhibitions, multimedia presentations, and interactive activities—including cultural theme months, Quality Compliance Weeks, knowledge quizzes, game-based interactions, WeChat Q&A sessions, and scenario simulations—are employed to effectively instill quality integrity values across the organization.

2.2.3 Quality Regulations

The company remains committed to achieving sustainable growth while complying with legal, regulatory, and stakeholder requirements—ensuring the comprehensive competitiveness of our products and services.

The company establishes internal standards by gathering relevant laws, regulations, and other criteria and requirements, ensuring that its products meet national legal mandates as well as industry and national standards—thereby demonstrating corporate social responsibility through product technology. Meanwhile, the company has developed several key procedures, including the "Quality/Environment/Occupational Health & Safety Compliance Assessment Procedure" and the "Supplier and Design Specification Hazardous Substances Compliance Procedure," which clearly define responsibilities for product quality control and adhere to the "Four Nos" principle in addressing quality-related incidents.

During the development of new products and technologies, the company actively identifies and gathers information on legal requirements, regulations, industry and product standards, as well as intellectual property risk mitigation and compliance measures, and conducts thorough evaluations to ensure alignment with both legal frameworks and customer expectations.

Figure 2.2-1   The company's compliance with quality standards and other relevant laws

Category	Regulations
Corporate Governance	The "Company Law of the People's Republic of China," the "Securities Law of the People's Republic of China," the "Accounting Law of the People's Republic of China," and others
Ensuring employee well-being, social responsibility	The Labor Law of the People's Republic of China, the Labor Contract Law of the People's Republic of China, the Social Insurance Law of the People's Republic of China, the Trade Union Law of the People's Republic of China, and others
Quality	The "Product Quality Law of the People's Republic of China," the "Measurement Law of the People's Republic of China," the "Standardization Law of the People's Republic of China," and others
Environment	"The Environmental Protection Law of the People's Republic of China," "The Water Pollution Prevention and Control Law of the People's Republic of China," and "China The "Law of the People's Republic of China on the Prevention and Control of Air Pollution," the "Jiangsu Province Water Resources Management Regulations," and others
Engineering	"Regulations on Construction Project Site Management," "Regulations on Environmental Protection Administration for Construction Projects," and others
Security	"The Fire Protection Law of the People's Republic of China," "Fire Safety Management for Government Agencies, Organizations, Enterprises, and Public Institutions" "Regulations," the "Suzhou Fire Protection Regulations," the "Special Equipment Safety Law of the People's Republic of China," and others
The implementation of product standards and Formulate	International Electrotechnical Commission product standards, Solid State Technology Association product industry standards, Pin Grid Array PGA Encapsulated chip (Q/320501 TFAMD004-2021) Wait

2.2.4 Quality Compensation

The company has established the "Customer Complaint Management Process" and the "Return Processing Workflow," creating a robust system for handling and resolving complaints related to product quality and after-sales service, as well as managing return requests. This system includes clear procedures for assessing, receiving, and addressing customer compensation claims. A dedicated Customer Service Department has been set up as the primary unit responsible for all aspects of customer support—handling pre-sale, in-sale, and post-sale interactions, coordinating business meetings, and arranging visits and consultations. Meanwhile, the Quality Department oversees communication and coordination with customers, promptly responding to and following up on quality-related inquiries and complaints. It also ensures that customer feedback—such as grievances and complaints—is effectively relayed to the relevant internal departments for thorough analysis, enabling the development, implementation, and verification of corrective and preventive measures. When a customer requests compensation, the corresponding customer service representative will first receive the request and initiate the compensation processing procedure. If the claim meets the terms outlined in the mutually agreed-upon quality agreement, the relevant department director will review and approve the compensation amount and method. Once approved, the "Customer Claim Contact Form" will be completed and submitted to the management team for acknowledgment, ensuring timely fulfillment of the compensation obligation. Simultaneously, an in-depth analysis of the root cause behind the issue will be conducted, followed by cross-functional collaboration to implement preventive measures, thereby minimizing the likelihood of similar incidents recurring in the future. In cases where a customer’s compensation request falls outside the scope of the agreed-upon quality agreement, the customer service team will engage in constructive dialogue with the customer, working collaboratively to find amicable solutions. This approach not only addresses the customer’s concerns but also enhances overall satisfaction by providing added value beyond standard services.

2.2.5 A system for continuous improvement and sustained effectiveness

The company has established the "Management Review Procedure" and the "Internal Audit Procedure," and has built a team of internal auditors to ensure the system operates in compliance, remains effective, and continuously improves. Each year, the company schedules internal audits covering products, processes, and the overall system—comprehensively addressing all relevant products, processes, departments, and regions. For any nonconformities identified during audits, the responsible departments are tasked with analyzing the root causes, developing corrective and preventive actions, and implementing timely improvements. The Quality Department then verifies the effectiveness of these corrective measures, ultimately compiling an Internal Audit Report that highlights opportunities for further enhancement. This report serves as a critical input for the Management Review, which is presented to top management. Top management convenes monthly Operational Review Meetings and annual Management Review Meetings to evaluate the performance of the quality management system, assess changes in both internal and external factors, verify the adequacy of resources, and gauge the effectiveness of measures taken to address risks and seize opportunities. Through these reviews, top management ensures that the quality management system remains fit-for-purpose, sufficiently robust, and highly effective—while aligning seamlessly with the company’s strategic direction.

The company has established the "Nonconforming Product Control Procedure" to ensure strict management of nonconforming products. Nonconforming and suspect products are clearly identified and isolated. For products approved for rework according to regulations, a full inspection must be conducted after rework; only those that meet the required standards can proceed to the next process, enter storage, or be delivered to customers. Nonconforming products that fail to meet the criteria will be handled according to customer specifications—either reworked, scrapped, or disposed of as directed. If nonconforming products are discovered after delivery or during initial use, the company conducts an anomaly analysis tailored to the nature of the issue, implementing measures that match the extent of the product's actual or potential impact. Where appropriate, the company also initiates a recall process for the affected products.

In addition, the company has established several systems, including the "Statistical Process Control Procedure," "Material Review Meeting Procedure," "Corrective and Preventive Action Procedure," and "Continuous Improvement Procedure." These systems are designed to thoroughly review and address any quality issues that arise, while also emphasizing systematic approaches in daily R&D and production activities. Through initiatives such as Quality Control Circles and continuous improvement efforts, coupled with the effective implementation of quality tools, the company fully leverages the PDCA cycle to drive ongoing enhancements and strive for excellence. Moreover, the company has adopted Toyota’s Lean Management methodology, encouraging all employees—from frontline workers to senior management—to actively participate in quality improvements, fostering a company-wide culture of continuous enhancement. Key areas of focus include error-proofing applications, process refinement, equipment optimization, and workflow streamlining. To systematically support these efforts, the company has set up a dedicated Continuous Improvement Department, responsible for defining annual improvement priorities and departmental goals. This department also oversees comprehensive training programs on Lean Management tools and provides guidance and evaluation for improvement projects across the organization. Additionally, the company has instituted a range of prestigious awards, including the President’s Award, Vice President’s Award, Project Achievement Award, QCC Gold, Silver, and Bronze Awards, Starlight Award, Best Lean Six Sigma Award, and Patent Award, among others. ，2023 Nearly 650 employees received improvement awards this year, accounting for about 35% of the entire workforce, with bonuses totaling nearly 3 million yuan.

2.3 Quality and Safety Risk Management

2.3.1 Quality and Safety Risk Monitoring

The company has strengthened product testing and verification by equipping itself with advanced testing instruments and adopting cutting-edge testing standards. It implements management of the testing process in accordance with ISO/IEC 17025 requirements, ensuring that products with quality or safety issues are identified promptly. Additionally, the company actively promotes product validation, leveraging specialized institutions and relevant technology platforms to conduct full-lifecycle monitoring—covering prototype, engineering, and mass-produced items—to rigorously safeguard product quality and safety.

The company has established an enterprise-quality archive and a database for product quality handling reports, continuously refining and strengthening its quality risk monitoring system. It regularly summarizes and analyzes the current stage of quality conditions, implements targeted solutions, and consistently optimizes and enhances both the methods and focus areas of quality management. Additionally, the company conducts periodic analyses of quality trends, actively engages in safety and quality risk monitoring, as well as comprehensive assessment and evaluation—providing systematic assurance for producing high-quality products that are not only superior in quality and price but also consistently reliable. As a result, overall safety and quality risks have been significantly reduced.

2.3.2 Emergency Management

Company management fosters and strengthens risk awareness through regular situation reporting meetings, risk incident case analyses, and other activities. By studying industry policies and operational risks, the company identifies potential threats across financial, market, operational, legal, safety, environmental, and quality dimensions, systematically establishing a comprehensive internal control framework to enhance its strategic and operational management capabilities in responding to dynamic internal and external environments. For instance, in financial risk management, the company builds an internal control team to oversee key processes at the corporate level—such as sales and collections, procurement and payments, external investments, engineering projects, and cash management—ensuring thorough risk identification and standardization. Regular testing and inspections are conducted to continuously refine and improve the company’s internal control system. In strategic risk management, dedicated personnel are assigned to oversee corporate strategy, clearly defining strategic management procedures as well as methodologies for adjusting strategies and mitigating risks, thereby safeguarding the company’s long-term sustainability. Meanwhile, in operational risk management, an audit department is established, with specialized staff tasked with internal risk control and integrity management, ensuring the company’s enduring success and growth.

To address potential emergencies in internal operations, the "Emergency Preparedness and Response Procedure" has been established. This procedure outlines an emergency plan that covers scenarios such as critical equipment failures, raw material disruptions, common natural disasters, fires, interruptions of water, electricity, or gas supply, labor shortages, cyberattacks, and infectious disease outbreaks. It clearly defines internal emergency responsibilities, ensures adequate allocation of emergency resources, and organizes regular emergency drills to guarantee a swift response capability during crises.

Currently, the company has obtained certification for its Business Continuity Management System and has identified relevant business continuity plans in accordance with ISO 22301 requirements, ensuring the seamless delivery of services to customers.

( 3) Quality Integrity Management

3.1 Quality Commitment

3.1.1 A commitment to complying with relevant laws and regulations

The company upholds the pursuit of profit maximization under the principles of legality, compliance, ethical integrity, and trustworthiness, ensuring the sustainable operation of the business. We champion ethical management practices, seamlessly integrating social benefits with corporate gains. Senior leadership relies on a robust communication framework, using dialogue to articulate the company’s core values and its commitment to honest, trustworthy business practices—ultimately fostering satisfaction and even loyalty among all stakeholders.

For employees, senior leaders have integrated the principles of "abiding by laws and regulations, and conducting business with integrity" into the core corporate spirit of "loyalty, responsibility, diligence, and innovation." Here, "loyalty" means being devoted to the company and your work, demonstrating professionalism and passion for your role; "responsibility" calls on all employees to cultivate a strong sense of duty, boldly taking ownership of both their professional and societal responsibilities; "diligence" encourages everyone to work hard, persevere through challenges, and strive continuously—using honest labor and lawful business practices to build a better life; and "innovation" inspires employees to dare to think outside the box, embrace new opportunities, and stay ahead of the times.

For customers and partners, by clearly outlining the company’s ethical and integrity guidelines in agreements and contracts, we emphasize that trustworthiness and morality are the prerequisites and foundation for collaboration, fostering a mutually beneficial chain among stakeholders built on a shared consensus regarding ethical and integrity standards.

Comprehensively promote the organizational development of Party and trade union bodies, leveraging the functions of grassroots Party branches, trade unions, and other organizations within the company. Actively organize efforts to study and implement the spirit of the 20th National Congress of the Communist Party of China and the Two Sessions, using "four key approaches" to advance spiritual civilization building. Furthermore, proactively engage with relevant stakeholders in collaborative initiatives and networking activities, fostering mutual growth while promoting values such as integrity, compliance, and ethical business practices—ultimately deepening both employees' and partners' understanding, and cultivating a corporate culture characterized by legality and trustworthiness.

3.1.2 Commitments publicly released or declared by the enterprise

The company adheres to a quality philosophy of "Customer First, Pursuit of Excellence," firmly upholding the quality belief that "Customers are God, and Quality is Life." We embody the quality spirit of "Respecting Quality, Customer-Centric; Dedication and Innovation for Continuous Progress," actively promoting these values through various channels—including the company website, cultural platforms, notice boards, factory newsletters, WeChat official accounts, and Douyin official accounts—reaching out to employees, customers, suppliers, and the public alike. At the same time, we diligently fulfill our commitments in the company's daily business operations.

3.1.3 The commitment to customers' reasonable expectations and implicit needs

The company places great emphasis on technology research and development, significantly increasing investment in R&D capabilities. Centered around customer needs, we actively listen to customers' feedback and suggestions regarding functionality, quality, reliability, and other aspects, while also pursuing process improvements and innovative initiatives to meet customers' expectations for product quality and delivery schedules. In terms of product quality, the company rigorously adheres to the requirements of quality management systems such as ISO9001 and IATF16949. Through activities like tackling technical challenges, implementing quality enhancements, and engaging QCC teams, we ensure the safety and excellence of our products.

3.2 Operations Management

3.2.1 Design and Development

The company’s design and development process fully integrates new technologies and knowledge, while also leveraging the experiences and lessons learned from each group company. It comprehensively considers critical factors such as quality, safety, delivery schedules, productivity, environmental protection, and cost control—ensuring that the development process becomes more rational, competitive, and ultimately enhances value performance. Centered around market demand, R&D progress, production processes, and mass-production improvements, this approach closely aligns with key performance indicators related to time-to-market, product quality, and cost efficiency. By doing so, it enables the company to swiftly adapt to evolving market trends, accelerate its response speed, and significantly reduce the development cycle for new products. The process strictly follows the "Advanced Product Quality Planning (APQP)" procedure, employing a structured, phase-by-phase methodology to manage every stage of new product introduction—from project planning and preparation to engineering batch verification, small-scale trial production, and finally, full-scale mass production. Throughout the entire project lifecycle, APQP requirements mandate continuous feedback, evaluation, and corrective actions, ensuring that risks and deliverables at each stage are thoroughly reviewed. Additionally, an integrated electronic APQP system facilitates seamless communication among cross-functional teams, guaranteeing that all necessary steps are completed on schedule and that the final product fully meets customer expectations.

3.2.2 Procurement

The company categorizes raw materials into three types—direct materials, indirect materials, and consumable materials—based on their risk level to product quality. For direct material suppliers, in addition to meeting the required qualifications, regular on-site audits are conducted. As for indirect material suppliers, the company first performs a risk analysis of the material and determines whether an on-site audit is necessary, depending on the quality of materials supplied by the vendor. For consumable material suppliers, a standard written review is typically carried out. After passing initial evaluations by departments such as procurement, quality control, engineering, and R&D, raw materials undergo verification according to the "New Supplier Verification Procedure." Only suppliers that successfully pass this verification process are added to the approved supplier list. Only suppliers listed on this approved roster are eligible to engage in cooperative transactions. Monthly performance monitoring is conducted to assess suppliers' services, delivery schedules, pricing, technical support, and overall quality. Quarterly performance evaluations are also held, with results categorized into five levels: A, B, C, D, and E. Based on these performance ratings: suppliers rated A receive increased order volumes; those at level B maintain their current order levels; suppliers at level C see their order volumes reduced; vendors at level D are required to implement improvements within a specified timeframe while temporarily halting the introduction of new materials; and suppliers at level E face a complete suspension of normal material deliveries—and ultimately, termination of all trading relationships.

In terms of equipment procurement, purchasers first conduct preliminary inquiries with reputable and capable companies. After suppliers provide relevant documentation—such as business licenses, quality certifications, and permits—they complete the "Supplier Investigation and Evaluation Form," which verifies the supplier's management system and its ability to meet the requirements for the purchased equipment. This evaluation covers aspects like product quality, environmental impact, safety standards, and production capacity. The completed form is then submitted to the Procurement Department Manager for initial review, and on-site investigations may be conducted if necessary. Before any equipment is put into use, it must undergo thorough verification to ensure compliance with the required product specifications and process standards.

3.2.3 Production

The company’s Manufacturing Department, Engineering Department, Continuous Improvement Department, and Equipment Department are specifically responsible for managing chip packaging and testing production as well as process control. They have developed and steadily refined comprehensive control plans for various products, along with key documents such as the "Process Control Procedure," the "Equipment Management Procedure," detailed "Process Control Guidelines" for each workstation, "Process Operation Guidelines," and "Equipment Operation Guidelines." Before taking up their roles, all employees undergo thorough skills training. Only after successfully passing both theoretical exams and practical assessments are they issued a skills certification card, allowing them to officially start working. Training and assessment records are meticulously stored in the Learning Management System. Additionally, operators and technicians are required to undergo re-certification reviews every six months and annually, respectively. To further strengthen employees' quality awareness and enhance operational proficiency, the company employs a variety of supervision and evaluation methods, including morning and evening shift handover meetings, regular dissemination of abnormality case studies, and ongoing on-the-job training. Throughout the production process, managers at all levels rigorously fulfill their responsibilities by conducting timely inspections and promptly addressing any discrepancies, thereby ensuring the stability and efficiency of production operations.

The production process is managed through a materials management system to control the raw materials required for manufacturing, ensuring the quality of semi-finished and finished products. We strictly adhere to the "Three No's Principle"—refusing to receive, produce, or pass on any nonconforming items. Critical processes are equipped with designated quality control points, and employees are encouraged to conduct self-inspections, mutual checks, and specialized inspections. Meanwhile, approval procedures are rigorously enforced to ensure seamless coordination among material requisition, distribution, and verification. At each production step, material balances are meticulously maintained to guarantee that the input materials and output products align precisely with process specifications, effectively eliminating any potential quality risks. Production records are centrally managed by the Production Department, which is responsible for printing, completing, reviewing, and archiving these documents. Employees must promptly fill out production records as required, ensuring clear handwriting, accurate content, and complete data. Both the operator and the reviewer must sign off to confirm accuracy. After each production batch concludes, trainers compile and review the records before submitting them promptly to temporary storage. Once approved without errors, the records are organized, filed by batch number, and finally transferred to the Records Warehouse for permanent storage. Before final submission, an application for record-keeping approval must be formally reviewed and approved by authorized personnel.

Based on industry characteristics and actual conditions, the company has strengthened the informatization of its production processes, implementing systematic management across the entire manufacturing lifecycle. This has enabled the company to achieve intelligent manufacturing supported by advanced IT systems: By establishing standardized process technologies and complementing them with Process Control Systems (PCS), Real-Time Parameter Management Systems (RMS), and Material Management Systems (MMS), the company now maintains comprehensive control over production workflows, critical process parameters, and raw materials. Employees can efficiently access multiple systems and data sources simultaneously through a single-click operation (OTA). Meanwhile, cutting-edge equipment management tools—such as the Equipment Management System (MT2), Tooling Management System (TMS), and the Automated Job Reporting & Tracking System (AJRT)—ensure timely maintenance, monitor tooling conditions in real time, and track equipment status, guaranteeing optimal operational performance. Process quality control is rigorously enforced via the datalyzer system, which continuously monitors the Process Capability Index (Cpk) and triggers immediate alerts for any deviations. Additionally, personnel undergo immersive, real-world training using online multimedia resources and equipment-operation simulation software powered by artificial intelligence and big data analytics, while their performance metrics are systematically captured and analyzed. To further enhance efficiency and safety, the company has introduced automated guided vehicles (AGVs) and automated material storage units in select areas of the production floor, significantly reducing manual handling risks and lowering labor costs—while boosting overall operational productivity. Moreover, the company leverages a robust big data platform to collect and analyze production data in real time, uncovering valuable insights that unlock internal potential. By tapping into the expertise of its technical leaders, the organization actively drives continuous equipment upgrades and fosters innovative technological advancements, addressing weak links through targeted R&D efforts. Before taking up their roles, all production staff must complete rigorous training and pass competency assessments. A comprehensive employee training record is maintained, incorporating diverse methods such as centralized workshops, pre-shift briefings, mentorship programs ("teach, assist, guide"), and visual management techniques—all designed to reinforce workers' skills and deepen their commitment to quality standards.

The company has implemented an advanced Planning and Scheduling System (APS) based on a refined production organization model to shorten both production and delivery cycles, enabling rapid adaptation to fluctuating market demands in terms of product variety and order volume. By minimizing inventory levels while consistently meeting customer needs, the company has not only enhanced customers' comprehensive understanding of product performance but also deepened their trust in product quality. As a result, order volumes have steadily increased. Moreover, this approach has effectively addressed post-delivery quality issues, significantly reducing the workload for customer service staff and allowing for greater flexibility in scheduling customer service tasks.

3.3 Marketing Management

3.3.1 Marketing Planning

Based on the market philosophy of "creating demand, leading the market, and serving customers," the company thoroughly researches both internal and external information, analyzes future market trends, and effectively leverages Tongfu Supermicro's forward-looking research outcomes. Relying on its own robust technology platform, the company implements innovative approaches such as developing new products and replacing older ones to reduce costs, ensuring that it remains competitively positioned in the foreseeable future.

The company focuses on identifying potential markets and customers by leveraging channels such as investment promotion events, electronics trade shows, industry associations, and referrals from loyal customers. This approach allows us to gather valuable insights into prospective customers and market trends, enabling us to develop products tailored to specific needs. By capitalizing on our brand strengths and strategic market positioning, we aim to foster collaboration with both existing and emerging customers. In these partnerships, we prioritize delivering high-quality products and comprehensive services to build lasting customer loyalty—and ultimately, to uncover new opportunities for growth.

The company employs a variety of channels to understand customers' needs, expectations, and preferences. By fully leveraging modern information platforms, we maintain close connections and seamless communication with our customers. Tailored to different customer segments, we prioritize distinct approaches while simultaneously gauging the relative importance of each customer’s needs, expectations, and preferences in influencing their purchasing decisions. The collected market insights are then systematically compiled and analyzed, resulting in documents such as the "Market Research Report," which serve as critical references and foundations for the company’s product development, market expansion, and process improvement initiatives.

The company leverages customer and market intelligence to enhance its services for key customers. For instance, by analyzing collected customer and market data, the company has identified the specific requirements of key customers regarding how well the company’s products align with their applications. As a result, when launching new products for these customers, their feedback is treated as crucial input for product development. To address this, the company has established a dedicated team of analysts and service professionals who regularly engage in technical exchanges and communication with customers. Additionally, these teams actively participate in the early stages of product design and process planning, working closely with customers to resolve any challenges they may face.

Based on the company's overall business objectives, the Business Management Department will break down the annual sales target into quarterly and monthly targets and implement rolling forecast adjustments. Additionally, the department will incorporate monthly plan accuracy as a key performance indicator (KPI) for evaluation. To ensure smooth order execution and timely resolution of production-related issues, the company has established a dedicated position responsible for tracking and addressing orders throughout the production process. At the same time, the company is adopting a one-on-one customer service model to strengthen communication with customers, ensuring that the sales process is effectively carried out while meeting customer expectations.

3.3.2 Sales Channel Management

The company primarily provides chip packaging and testing outsourcing services. It identifies and defines its main customer interaction points as pre-sales, in-sales, and after-sales support, and has established key customer engagement channels—including a dedicated portal website, market promotion exhibitions, executive-level visits, customer site visits, and face-to-face meetings—to maintain robust communication and collaboration with customers.

3.3.3 After-sales Management

The company communicates with customers through various channels and employs diverse methods to understand their needs and expectations, identifying their key purchasing factors—such as delivery-time inquiries, technical requirements, transaction-related communications, design feedback, and complaints. These requests are then internally relayed to guide every stage of the production management process. In the after-sales phase, the company addresses customer needs by providing product training, handling complaints/ grievances, conducting satisfaction surveys, and even visiting customers in person.

( 4) Fundamentals of Quality Management

4.1 Standard Management

4.1.1 Enterprise-executed product standards and standard levels

Enterprise standards such as "Pin Grid Array PGA Package Chip" (Q/320501 TFAMD004-2021) and "Underfill Adhesive Filling Technical Specifications" (Q/320501 TFAMD003-2020) have been developed and published on the Enterprise Standard Public Information Service Platform.

4.1.2 Benchmarking

The company conducts chip packaging and testing according to customers' technical requirements and standards, and strictly follows the relevant industry standards provided by the customers.

4.1.3 Participating in standard setting

The company, as a participating organization, contributed to the Advanced Computing Industry's Smart Manufacturing Development White Paper, jointly compiled by the China Academy of Information and Communications Technology. The company The semiconductor packaging and testing smart factory standard application pilot project has been selected for the 2023 Intelligent Manufacturing Standards Application Pilot List jointly released by the State Administration for Market Regulation and the Ministry of Industry and Information Technology.

4.1.4 Standardized Management

The company, in accordance with the "Standardization Law of the People's Republic of China" and the "Administrative Measures for Enterprise Standardization," has designated the Quality Department as the centralized body responsible for standardization work, based on its production and operational needs. This department is staffed by experienced professionals from key functional areas such as quality, R&D, engineering, and equipment—many of whom serve as part-time standardization personnel. These individuals are tasked with drafting the company’s standardization work plans, organizing the development and revision of enterprise standards, implementing national, industry, local, and corporate standards, and overseeing their execution. They also ensure unified management of all types of standards, maintain comprehensive archives, gather domestic and international standardization intelligence, provide standardized education and training to relevant company personnel, offer guidance on standardization efforts across related departments, and undertake standardization tasks assigned by higher-level administrative authorities and other relevant regulatory bodies.

4.2 Metrology Management

4.2.1 Metrology Traceability System

The company strictly adheres to documents and regulations such as the "People's Republic of China Metrology Law," establishing a comprehensive set of management documents and control methods covering all stages—from raw material procurement and process management to production equipment, inspection tools, in-process inspections, and final product testing. We have dedicated metrology personnel responsible for managing, equipping, and conducting regular calibration of the company’s measuring instruments. Additionally, we emphasize professional training for metrology management staff, providing strong assurance for the standardization of the company’s metrology practices.

To ensure product quality, strict process control is implemented throughout the production manufacturing process. We strengthen metrological management of direct and indirect materials used in production, ensuring the proper operation of measuring equipment and maintaining accurate measurements.

Measurement instruments are managed strictly according to the approved procurement, warehousing, and distribution plans and procedures. Each department assigns dedicated personnel to safeguard these instruments, maintaining detailed records and completing all necessary registration processes. The acceptance of measurement instruments is rigorously controlled through a systematic framework—only those that pass inspection can be put into use. Additionally, in-use instruments undergo regular periodic inspections or verifications, with enhanced on-site checks and supervision to ensure proper usage. Any issues identified are promptly addressed. For departments with identified problems, specific improvement recommendations are provided, and proactive, effective measures are implemented to ensure continuous progress. This robust metrology foundation lays a solid groundwork for producing high-quality products.

4.2.2 Measurement Management System Certification

The company, in accordance with the requirements of the ISO 10012 Measurement Management System, is implementing measures to ensure that both measurement equipment and measurement processes meet their intended purposes. By effectively managing these elements, we aim to mitigate risks arising from inaccurate measurement results, minimizing the likelihood of such inaccuracies and, consequently, reducing potential quality-related risks in our products. This approach ensures that the measurement management system plays a critical role in helping the organization achieve its product quality objectives—as well as other strategic goals. Currently, preparatory work for the relevant certification has already begun, and the system documentation is currently being developed.

4.2.3 Metrological Assurance Capability Assessment

The company has obtained the Metrological Qualification Certificate issued by the Suzhou Institute of Metrology and Testing, demonstrating that its metrological assurance capabilities—in areas such as product quality and operational management—meet the requirements stipulated in the "Jiangsu Province Enterprise Metrological Verification Standards."

4.3 Certification Management

4.3.1 Product Certification

As a chip packaging and testing foundry conducting product certification, the company needs to collaborate with customers who act as producers (manufacturers). By a third party A procedure that confirms whether a company’s products, processes, or services meet specific requirements by evaluating the company’s quality management system and conducting sample-type testing, while also verifying the organization’s ability to consistently produce products that comply with standard specifications—and provides written certification as proof. As of now, no mandatory or voluntary product certification requests have been received from end customers.

4.3.2 System Certification

The company has established a comprehensive quality management system that covers every stage of semiconductor packaging and testing services. It has integrated multiple internationally recognized standards, including ISO 9001 for quality management, IATF 16949 for automotive industry quality management, IECQ HSPM QC080000 for hazardous substance process management, ISO 14001 for environmental management, ISO 45001 for occupational health and safety management, ISO 50001 for energy management, the integration of IT and industrialization, standardized safe production practices, "Suzhou Made" brand enterprise quality management, and business continuity management. Through gradual consolidation, these systems have evolved into a unique, unified Integrated Management System (IMS), ensuring product and service quality and safety at the systemic level.

4.4 Testing and Inspection Management

4.4.1 The Establishment of Standards

The company has established inspection standards for direct materials, indirect materials, and consumable materials—including substrates, heat-sink covers, reinforcing sheets, various packaging materials, capacitors, resistors, solder paste, solder balls, and chemical agents. These standards are developed based on specifications derived from R&D and engineering validation processes for raw material inspections. Additionally, inspection criteria for the appearance of semi-finished and finished products, along with functional and performance testing procedures, conditions, and specifications, are formulated according to customer requirements.

4.4.2 Implementation of the standards

The incoming material inspector is exclusively responsible for inspecting raw materials, while the continuous improvement team's visual inspectors handle the visual inspection of semi-finished and finished products. Quality department inspectors conduct random sampling inspections. Meanwhile, the Test Engineering Department sets test conditions—such as temperature, voltage, and current—based on customer-provided test procedures, ensuring that products undergo functional, electrical, and system-level testing. Additionally, the Reliability Laboratory defines test items and conditions according to the product’s reliability rating, carrying out new-product reliability verification as well as regular reliability monitoring for mass-produced items.

( 5) Product Quality Liability

5.1 Product quality level

5.1.1 Product quality level

Driven by technological innovation, the company is firmly establishing its market position as the "world-class preferred partner for comprehensive high-end chip solutions," while continuously strengthening the capabilities and vitality of its packaging and testing services. We are accelerating innovation to secure a strong foothold in the market with cutting-edge, high-tech processes that earn us a stellar reputation. At the same time, we are reinforcing quality management practices, delivering premium-quality services that not only win market share but also foster sustainable growth and solidify our industry image. To this end, we remain committed to attracting and nurturing top-tier talent, providing the intellectual foundation needed to build trust and enhance our corporate identity. By systematically developing and optimizing our packaging and testing service infrastructure, we are steadily fortifying the technical underpinnings of these services. Additionally, we are further enhancing our quality management systems, actively adopting advanced scientific approaches to quality control, deepening our efforts in standardization, and intensifying training programs for quality management professionals. We’re also ramping up research and development initiatives to drive continuous innovation. Over the past three years, the company has witnessed steady improvements in product quality, reflecting our unwavering dedication to excellence and customer satisfaction.

Figure 5.1-1: Trend in Product Quality Levels

Project	Unit	2021 Year	2022 Year	2023 Year	Trend
Encapsulation Yield	%	99.96	99.96	99.96	Improving
Testing packaging yield	%	99.97	99.97	99.97	Improving
Reliability Test Pass Rate	%	100	100	100	Stability
Final Inspection Defect Rate of Finished Products	ppm	300	300	300	Improving

5.1.2 After-sales quality level

The company places customers at the center of its operations, strengthens market expansion, and innovates service offerings, achieving significant progress in areas such as customer satisfaction, loyalty, and overall market performance. With customer satisfaction as the core objective driving business operations, the company continuously monitors and refines its products and services. Over the past three years, customer satisfaction metrics have shown a steady upward trend. The company defines customer "loyalty" as the willingness of end customers to maintain long-term partnerships, reflected in metrics like repeat purchase rates and the duration of ongoing collaborations. Notably, during customer satisfaction surveys, the company specifically tracks and reports on customer loyalty separately.

Figure 5.1-2: Trends in Customer Satisfaction and Customer Loyalty

Project	Unit	2021 Year	2022 Year	2023 Year	Trend
Customer Satisfaction	%	94.42	94.60		Improving
Customer Loyalty	%	96.00	96.20		Improving

5.2 Product After-Sales Responsibility

5.2.1 Quality Assurance Liability System

The company will issue a written Quality Assurance Certificate upon the customer’s request, based on the mutually agreed-upon quality agreement. This certificate guarantees that the products sold are of excellent quality and ensures that, within the specified timeframe, any product defects caused by packaging or testing—provided they are eligible for rework—the customer will receive free rework services.

5.2.2 Product Recall Management System

The company has established the "Return Processing Procedure," outlining the corresponding recall process, handling records, and product disposal methods. If the company internally identifies nonconforming products that have already been shipped to customers, it will immediately notify the customers and proactively initiate a recall of the affected items. Similarly, if nonconforming products are discovered or reported by customers—and subsequently verified as resulting from packaging or testing issues—the company will take immediate action to recall these defective items. Additionally, the company will maintain thorough documentation of all related actions, clearly label nonconforming products, and ensure they are strictly segregated and isolated.

5.2.3 Complaint Handling System

The company has established the "Customer Complaint Handling Procedure," guided by the principles of "speed, fairness, timeliness, and communication," and strictly adheres to the "1-2-7 Principle": Within one business day of receiving a customer complaint, we must respond promptly and maintain ongoing communication with the customer; within two business days, we must implement containment measures to minimize the impact of the issue on the customer as much as possible; and within seven business days, we must deliver a comprehensive improvement report, outlining both long-term solutions and preventive actions.

For significant customer complaints that trigger a crisis of public trust, the company has established an emergency response mechanism. A "Crisis Management Leadership Team" has been formed, chaired by the General Manager. The team includes representatives from various functional areas—such as R&D, new product introduction, manufacturing, quality control, engineering, marketing, customer service, sales, legal affairs, and public relations—to thoroughly analyze external circumstances and address incidents that could severely impact the company's reputation. Additionally, the team strengthens crisis public relations efforts, particularly in response to situations like major complaints leading to loss of public trust or negative media coverage.

The Quality Department is responsible for collecting, consolidating, and evaluating customer complaint information. Each month, it compiles the "Customer Quality Complaint Tracking Form," which serves as a basis for assessing the performance of relevant departments and individuals. For service defects that are common or recurring, the department takes the lead in collaborating with various functional units to analyze the root causes, develop corrective action plans, and ensure their effective implementation, thereby driving continuous improvement in service quality. Customer complaints involving company partners or suppliers are handled by the respective responsible departments, which also oversee and monitor the progress of improvement efforts.

5.2.4 Fulfilling the "Three Guarantees" responsibilities and obligations

Given the characteristics of the packaging and testing outsourcing industry, quality issues related to packaging and testing have emerged in the chips delivered to customers. In response to customer needs, the company will collaborate with end customers to fulfill responsibilities for repair, replacement, or return of goods, as well as compensate for any losses incurred as a result.

5.3 Corporate Social Responsibility

5.3.1 Safety Management

The company adheres to the GB/T 33000 Basic Standard for Enterprise Safety Production Standardization and the ISO 45001 Occupational Health and Safety Management System requirements, actively promoting safety production principles and initiatives such as advancing safety standardization efforts. It has signed safety responsibility and commitment letters at all levels, identified potential hazards in office areas and production sites, clearly defined departmental responsibilities and objectives, and strengthened process control measures to safeguard employee health. Additionally, the company conducts quarterly three-waste inspections to ensure environmental compliance. To further enhance workplace safety and occupational health, it has established the "Occupational Health and Safety Factor Management Procedure" and the "Hazard Identification, Risk Assessment, and Control Method Determination Framework." The company continues to invest resources into safety and environmental improvement projects, aiming to optimize employees' working conditions, ensure their job security and occupational well-being, minimize pollution, and promote energy conservation and emission reduction. Moreover, the company conducts monthly audits to verify compliance with relevant laws and regulations, while also organizing regular legal knowledge training sessions and awareness campaigns throughout the year. Each year, in alignment with National Safety Production Month, the company hosts a variety of engaging, inclusive, and creatively designed internal activities, including annual management-level safety training, company-wide safety awareness and accident-prevention campaigns, safety knowledge competitions, first-aid training, and emergency response drills.

5.3.2 Environmental Protection

The company adheres to the requirements of the ISO 14001 environmental management system, actively embracing eco-friendly principles. We have established a leading energy-saving task force and proactively implemented comprehensive measures to address factors that could negatively impact environmental protection. We remain highly vigilant about both current and potential future challenges, promptly identifying emerging risks and hazards through early detection. To mitigate possible threats, we’ve developed tailored emergency response plans, enabling us to anticipate risks in advance and minimize associated damages. Moreover, we are committed to driving continuous improvement, striving toward even higher standards of sustainability. Actively participating in environmental conservation initiatives, our company has taken on the role of River Chief for enterprises within the industrial park, fostering harmonious development between the economy, the environment, and society. We also consistently promote energy-saving and resource-efficient projects, working tirelessly to build a resource-conscious and environmentally friendly enterprise.

5.3.3 Resource conservation

The company, in accordance with the requirements of the ISO 50001 energy management system, actively promotes energy-saving principles by establishing a leading group dedicated to energy conservation. It has formulated an energy management responsibility system, quota-based assessment mechanisms, and incentive-and-penalty policies for energy efficiency, along with developing specific energy-saving measures aimed at reducing energy consumption and enhancing overall energy-use efficiency. In project planning and construction, the company adheres to the design philosophy of "green, technology-driven, waste reduction, resource utilization, and reuse," incorporating a range of advanced technologies. Examples include the wastewater treatment project aimed at upgrading ammonia-nitrogen standards, the addition of backup compressors to the air compression system to improve operational stability, heat recovery heat pumps, solar-powered green lighting systems, reclaimed water reuse systems, facilities designed to minimize and reduce hazardous waste emissions, HVAC systems optimized for greater energy efficiency, energy-efficient upgrades for air compressors, and cutting-edge energy-saving renovations using ultra-high-efficiency permanent-magnet synchronous motors. As a result, the company has been recognized with prestigious awards, including National Green Factory, Suzhou Energy Efficiency Star, Park-Level Energy Conservation Achievement Award, and Park-Level Outstanding Economic Contribution Award (for energy conservation and emission reduction).

5.3.4 Consumer Rights Protection

The company actively fulfills its commitment to consumer rights protection, focusing on building and improving customer relationships, maintaining open communication and information exchange with customers, and fully respecting and safeguarding customer interests—all in order to win and retain customers, foster stronger loyalty, attract potential buyers, and unlock new business opportunities.

5.3.5 Public Welfare Support

The company remains committed to supporting vulnerable groups, with its charitable contributions benefiting students from financially challenged families, patients suffering from severe illnesses such as uremia, as well as elderly and children living in welfare institutions who are lonely or disadvantaged. Through a variety of initiatives, the company not only provides much-needed assistance to those in need but also inspires its employees to continuously dedicate themselves to公益 endeavors.

The company has established a Charity Committee, and every Mid-Autumn Festival, Double Ninth Festival, Spring Festival, and Children's Day, the management team and employees visit orphanages to spend time with orphaned children and elderly residents, bringing them care and warmth through a variety of engaging activities.

In collaboration with the Suzhou Red Cross Society and Suzhou Radio & Television Station, we launched the Chengshan Scholarship Program, dedicated to supporting students facing financial hardships and helping those in need. Over the past 17 years, the program has raised more than 8.68 million RMB, enabling over 1,700 economically disadvantaged college students to successfully complete their studies—lighting a beacon of hope for countless young people in times of difficulty. Notably, during the three-year pandemic period from 2020 to 2022, our company remained steadfast in its commitment to "keeping the spirit of compassion alive while continuing our dedication," ensuring that love and support never wavered despite physical isolation. We persevered through challenges, mobilizing resources from various sources to sustain this vital initiative and carry forward the chain of kindness.

Since 2010 until now, Tongfu Chaowei has visited the GaoHai community twice each year to provide loving educational support to children in need, helping more than 300 students in total. The total amount of donations has exceeded 600,000 yuan, enabling countless children—from elementary school through junior and senior high school all the way to university—to successfully complete their academic pursuits, achieve their life dreams, and embark on brighter, fulfilling futures.

Remote online classes designed for left-behind children in poverty have been running continuously for 10 years now, delivering over 80 sessions in total and reaching nearly 500 students—bringing much-needed emotional support to these children living deep in the mountains.

5.4 Quality and Credit Record

5.4.1 Poor record

Since the company established its factory, it has maintained a spotless record in terms of quality-related violations and non-compliance, with no recorded quality or safety incidents, as well as no significant quality complaints, product returns, or claims.

5.4.2 Good record

The company consistently maintains an industry-leading performance in product quality, with a testing and packaging pass rate reaching 99.97%. Several key customers have long retained the highest ratings in quality assessments, and the company has been honored multiple times with prestigious awards such as the "Best Supplier Award" and the "Excellence in Quality Award." Additionally, the company was awarded the Suzhou City Quality Award for 2021 and the Suzhou Mayor's Quality Award for 2022. Furthermore, its pilot project on applying smart factory standards for semiconductor packaging and testing has been selected as part of the National Market Regulation Administration and the Ministry of Industry and Information Technology’s 2023 Pilot Program for the Application of Intelligent Manufacturing Standards.

III. Report Concluding Remarks

For the past two decades since its establishment, the company has steadfastly pursued a development path centered on mutual benefit and win-win cooperation. We have engaged in comprehensive, multi-level, and wide-ranging partnerships with numerous outstanding collaborators. Through these collaborations, we’ve learned, improved, grown, and evolved together—driving long-term growth while fostering mutual success. Quality is the lifeblood of our enterprise, and credibility forms its very foundation. There’s no such thing as "perfect quality"—only a commitment to continuous improvement in our quality management system. Similarly, trustworthiness is not static; it requires ongoing effort and dedication in building and maintaining a robust credit framework. Strong credit relies on impeccable quality standards and exceptional customer service. Looking ahead, the company will uphold a profound sense of responsibility and mission as we implement the key directives outlined in the "Outline for Building a Quality-Driven Nation." We’ll remain focused on advancing high-quality development, rigorously enhancing our quality management practices, and consistently safeguarding our corporate reputation. By delivering superior products that meet market demands and earning lasting customer loyalty through trustworthy business practices, we’ll ensure the sustained success of our quality management system—driving both continuous improvement and efficient operations. We’re committed to reinforcing a strong brand image across all levels of the organization and cultivating a deep-rooted product-quality mindset among our employees. Upholding the core principles that "quality is life" and "credibility is fundamental," we’ll translate these beliefs into concrete actions. Through a series of relentless improvement initiatives, we’ll elevate our sense of duty and strengthen our control measures, ensuring that every customer receives top-notch products and services. Above all, we remain fully accountable for upholding our quality commitments, placing quality at the heart of our business strategy and integrity at the cornerstone of our operations. By prioritizing excellence in quality and management, we’ll accelerate the development of new, high-quality productivity drivers, nurture innovative growth engines, build upon our competitive advantages, and lead the way toward groundbreaking progress and transformative achievements!